Karon Crone, director of Coatbridge-based search engine optimisation company Micrositez Digital Ltd, was disqualified for seven years from 26 December 2013 for failing to keep adequate records, following an investigation by the Insolvency Service.
Mrs Crone gave an undertaking to the Secretary of State for Business, Innovation and Skills that she would not act as a director, manage, or in any way control a company until 25 December 2020. Disqualification undertakings have the same weight as disqualification orders.
In giving the undertaking, Mrs Crone did not dispute that she failed to ensure that Micrositez Digital Ltd maintained or preserved adequate accounting records, and it was therefore not possible to verify the total income or expenditure of the company after it went into liquidation on 3 August 2012.
Investigations found that from July 2011 when the company started trading to 3 August 2012 when it went into liquidation, around 892,289 was paid from its bank account including 268,217 paid to the directors husband and an associated company. The husband and the company are located in Florida in the United States where Mrs Crone has since moved.
In addition, at the time Mrs Crone left the country, Micrositez Digital Ltd owed 139,497 to HM Revenue & Customs in unpaid tax.
Robert Clarke, Head of Insolvent Investigations North, at the Insolvency Service, said:
Companies are under a legal duty to account for their income and expenditure and fulfilling that duty is a key component of the role of a director; there is no place in the business environment for those who neglect their responsibilities in this area.
All too often, the lack of records to explain transactions is used to cover up other, more serious misconduct and we cannot determine whether that was the case at Micrositez, a fact which is reflected in the lengthy ban now in place.
These disqualifications should serve as a reminder to any directors tempted to do the same: the Insolvency Service will vigorously investigate you and seek to remove you from the marketplace.